Project report on

“The great Depression of 1929”

Guided by:- Prepared by:-

Prof Nimesh Khadelwal (Group 5 Kanter Hall)

1
Contents
Introduction

History

Causes of Great Depression

Effects to the world

Effects on individual

Effects by gender and race

Cultural effects

Observations and Learning

“The Great Depression of 1929”

Introduction:-
Great Depression in the United States, worst and longest economic collapse in the history of the
modern industrial world, lasting from the end of 1929 until the early 1940s. Beginning in the
United States, the depression spread to most of the world’s industrial countries, which in the 20th
century had become economically dependent on one another. The Great Depression saw rapid
declines in the production and sale of goods and a sudden, severe rise in unemployment.
Businesses and banks closed their doors, people lost their jobs, homes, and savings, and many
depended on charity to survive. In 1933, at the worst point in the depression, more than 15
million Americans—one-quarter of the nation’s workforce—were unemployed.

The depression was caused by a number of serious weaknesses in the economy. Although the
1920s appeared on the surface to be a prosperous time, income was unevenly distributed. The
wealthy made large profits, but more and more Americans spent more than they earned, and
farmers faced low prices and heavy debt. The lingering effects of World War I (1914-1918)
caused economic problems in many countries, as Europe struggled to pay war debts and
reparations. These problems contributed to the crisis that began the Great Depression: the
disastrous U.S. stock market crash of 1929 (see Black Monday), which ruined thousands of
investors and destroyed confidence in the economy. Continuing throughout the 1930s, the
depression ended in the United States only when massive spending for World War II began.

The depression produced lasting effects on the United States that are still apparent more than half
a century after it ended. It led to the election of President Franklin Delano Roosevelt, who
created the programs known as the New Deal to overcome the effects of the Great Depression.
These programs expanded government intervention into new areas of social and economic
concerns and created social-assistance measures on the national level. The Great Depression
fundamentally changed the relationship between the government and the people, who came to
expect and accept a larger federal role in their lives and the economy.

The programs of the New Deal also brought together a new, liberal political alliance in the
United States. Roosevelt’s policies won the support of labor unions, blacks, people who received
government relief, ethnic and religious minorities, intellectuals, and some farmers, forming a
coalition that would be the backbone of the Democratic Party for decades to come.

On a personal level, the hardships suffered during the depression affected many Americans’
attitudes toward life, work, and their community. Many people who survived the depression
wanted to protect themselves from ever again going hungry or lacking necessities. Some
developed habits of frugality and careful saving for the rest of their lives, and many focused on
accumulating material possessions to create a comfortable life, one far different from that which
they experienced in the depression years.

The depression also played a major role in world events. In Germany, the economic collapse
opened the way for dictator Adolf Hitler to come to power, which in turn led to World War II.

“The Great Depression of 1929”

History:-
Causes of great depression:-

It is a common misconception that the stock market crash of October 1929 was the cause of the
Great Depression. The two events were closely related, but both were the results of deep
problems in the modern economy that were building up through the “prosperity decade” of the
1920s.

As is typical of post-war periods, Americans in the Roaring Twenties turned inward, away from
international issues and social concerns and toward greater individualism. The emphasis was on
getting rich and enjoying new fads, new inventions, and new ideas. The traditional values of
rural America were being challenged by the city-oriented Jazz Age, symbolized by what many
considered the shocking behavior of young women who wore short skirts and makeup, smoked,
and drank.

The self-centered attitudes of the 1920s seemed to fit nicely with the needs of the economy.
Modern industry had the capacity to produce vast quantities of consumer goods, but this created
a fundamental problem: Prosperity could continue only if demand was made to grow as rapidly
as supply. Accordingly, people had to be persuaded to abandon such traditional values as saving,
postponing pleasures and purchases, and buying only what they needed. “The key to economic
prosperity,” a General Motors executive declared in 1929, “is the organized creation of
dissatisfaction.” Advertising methods that had been developed to build support for World War I
were used to persuade people to buy such relatively new products as automobiles and such
completely new ones as radios and household appliances. The resulting mass consumption kept
the economy going through most of the 1920s.

But there was an underlying economic problem. Income was distributed very unevenly, and the
portion going to the wealthiest Americans grew larger as the decade proceeded. This was due
largely to two factors: While businesses showed remarkable gains in productivity during the
1920s, workers got a relatively small share of the wealth this produced. At the same time, huge
cuts were made in the top income-tax rates. Between 1923 and 1929, manufacturing output per
person-hour increased by 32 percent, but workers’ wages grew by only 8 percent. Corporate
profits shot up by 65 percent in the same period, and the government let the wealthy keep more
of those profits. The Revenue Act of 1926 cut the taxes of those making $1 million or more by
more than two-thirds.

As a result of these trends, in 1929 the top 0.1 percent of American families had a total income
equal to that of the bottom 42 percent. This meant that many people who were willing to listen to
the advertisers and purchase new products did not have enough money to do so. To get around
this difficulty, the 1920s produced another innovation—“credit,” an attractive name for
consumer debt. People were allowed to “buy now, pay later.” But this only put off the day when
consumers accumulated so much debt that they could not keep buying up all the products coming
off assembly lines. That day came in 1929.

“The Great Depression of 1929”

American farmers—who represented one-quarter of the economy—were already in an economic
depression during the 1920s, which made it difficult for them to take part in the consumer buying
spree. Farmers had expanded their output during World War I, when demand for farm goods was
high and production in Europe was cut sharply. But after the war, farmers found themselves
competing in an over-supplied international market. Prices fell, and farmers were often unable to
sell their products for a profit.

International problems also weakened the economy. After World War I the United States became
the world’s chief creditor as European countries struggled to pay war debts and reparations.
Many American bankers were not ready for this new role. They lent heavily and unwisely to
borrowers in Europe, especially Germany, who would have difficulty repaying the loans,
particularly if there was a serious economic downturn. These huge debts made the international
banking structure extremely unstable by the late 1920s.

In addition, the United States maintained high tariffs on goods imported from other countries, at
the same time that it was making foreign loans and trying to export products. This combination
could not be sustained: If other nations could not sell their goods in the United States, they could
not make enough money to buy American products or repay American loans. All major
industrial countries pursued similar policies of trying to advance their own interests without
regard to the international economic consequences.

The rising incomes of the wealthiest Americans fueled rapid growth in the stock market (see
Stock Exchange), especially between 1927 and 1929. Soon the prices of stocks were rising far
beyond the worth of the shares of the companies they represented. People were willing to pay
inflated prices because they believed the stock prices would continue to rise and they could soon
sell their stocks at a profit.

The widespread belief that anyone could get rich led many less affluent Americans into the
market as well. Investors bought millions of shares of stock “on margin,” a risky practice similar
to buying products on credit. They paid only a small part of the price and borrowed the rest,
gambling that they could sell the stock at a high enough price to repay the loan and make a
profit.

For a time this was true: In 1928 the price of stock in the Radio Corporation of America (RCA)
multiplied by nearly five times. The Dow Jones industrial average industrial average—an index
that tracks the stock prices of key industrial companies—doubled in value in less than two years.
But the stock boom could not last. The great bull market of the late 1920s was a classic example
of a speculative “bubble” scheme, so called because it expands until it bursts. In the fall of 1929
confidence that prices would keep rising faltered, then failed. Starting in late October the market
plummeted as investors began selling stocks. On October 29, in the worst day of the panic,
stocks lost $10 billion to $15 billion in value. By mid-November almost all of the gains of the
previous two years had been wiped out, with losses estimated at $30 billion.

The stock market crash announced the beginning of the Great Depression, but the deep economic
problems of the 1920s had already converged a few months earlier to start the downward spiral.
The credit of a large portion of the nation’s consumers had been exhausted, and they were

“The Great Depression of 1929”

spending much of their current income to pay for past, rather than new, purchases. Unsold
inventories had begun to pile up in warehouses during the summer of 1929.

The crash affected the economy the way exposure to cold affects the human body, lowering the
body’s resistance to infectious agents that are already present. The crash reduced the ability of
the economy to fight off the underlying sicknesses of unevenly distributed wealth, agricultural
depression, and banking problems.

The stock market crash was just the first dramatic phase of a prolonged economic collapse.
Conditions continued to worsen for the next three years, as the confident, optimistic attitudes of
the 1920s gave way to a sense of defeat and despair. Stock prices continued to decline. By late
1932 they were only about 20 percent of what they had been before the crash. With little
consumer demand for products, hundreds of factories and mills closed, and the output of
American manufacturing plants was cut almost in half from 1929 to 1932.

Unemployment in those three years soared from 3.2 percent to 24.9 percent, leaving more than
15 million Americans out of work. Some remained unemployed for years; those who had jobs
faced major wage cuts, and many people could find only part-time work. Jobless men sold apples
and shined shoes to earn a little money.

Many banks had made loans to businesses and people who now could not repay them, and some
banks had also lost money by investing in the stock market. When depositors hit by the
depression needed to withdraw their savings, the banks often did not have the money to give
them. This caused other depositors to panic and demand their cash, ruining the banks. By the
winter of 1932 to 1933, the banking system reached the point of nearly complete collapse; more
than 5,000 banks failed by March 1933, wiping out the savings of millions of people.

As people lost their jobs and savings, mortgages on many homes and farms were foreclosed.
Homeless people built shacks out of old crates and formed shantytowns, which were called
“Hoovervilles” out of bitterness toward President Herbert Hoover, who refused to provide
government aid to the unemployed.

The plight of farmers, who had been in a depression since 1920, worsened. Already low prices
for their goods fell by 50 percent between 1929 and 1932. While many people went hungry,
surplus crops couldn’t be sold for a profit.

Natural forces inflicted another blow on farmers. Beginning in Arkansas in 1930, a severe
drought spread across the Great Plains through the middle of the decade. Once-productive topsoil
turned to dust that was carried away by strong winds, piling up in drifts against houses and barns.
Parts of Kansas, Oklahoma, Texas, New Mexico, and Colorado became known as the Dust
Bowl, as the drought destroyed the livelihood of hundreds of thousands of small farmers.
Packing up their families and meager possessions, many of these farmers migrated to California
in search of work. Author John Steinbeck created an unforgettable fictional portrait of their fate
in the novel The Grapes of Wrath (1939).

“The Great Depression of 1929”

Economic implication to the world:-
The impact of the Great Depression and the programs of the New Deal dramatically altered the
relationship between the American people and their government. The federal government
expanded its role in many social and economic areas, becoming larger and more powerful.
Americans came to accept government involvement and responsibility in caring for society’s
most needy members and regulating many aspects of the economy.

Like Hoover, leaders of other nations around the world were determined to balance their budgets
by raising taxes and slashing government spending. Germany, struggling to pay reparations
imposed by the peace settlements after World War I, suffered to a larger extent than any other
major industrial nation. Nearly 40 percent of the German workforce was unemployed by 1932. In
these desperate economic circumstances, large numbers of Germans began to listen to the tirades
of Hitler, who blamed the depression on Jews and Communists and promised to restore Germany
to economic and military strength. After his Nazi (National Socialist) Party became the strongest
political force in Germany, Hitler was named chancellor in January 1933. He soon seized
absolute control of the German government.

In Britain the effects of the depression were not as dramatic because the nation had been
suffering from high unemployment through much of the 1920s. Unlike the United States, Britain
already had unemployment insurance and government welfare payments to ease the burden on
the jobless. The depression took longer to hit hard in France because it was less industrialized
than the United States, Germany, and Britain. Also, because so many French men had died in
World War I, the workforce was very small, and it took a severe economic decline before the
demand for workers fell below the small supply.

The psychological, cultural, and political repercussions of the Great Depression were felt around
the world, but it had a significantly different impact in different countries. In particular, it is
widely agreed that the rise of the Nazi Party in Germany was associated with the
economic turmoil of the 1930s. No similar threat emerged in the United States. While President
Franklin Roosevelt did introduce a variety of new programs, he was initially elected on a
traditional platform that pledged to balance the budget. Why did the depression cause less
political change in the United States than elsewhere? A much longer experience with democracy
may have been important. In addition, a faith in the "American dream," whereby anyone who
worked hard could succeed, was apparently retained and limited the agitation for political
change.

Effects on individuals:-

Much of the unemployment experience of the depression can be accounted for by workers who
moved in and out of periods of employment and unemployment that lasted for weeks or months.
These individuals suffered financially, to be sure, but they were generally able to save, borrow,
or beg enough to avoid the severest hardships. Their intermittent periods of employment helped
to stave off a psychological sense of failure. Yet there were also numerous workers who were
unemployed for years at a time. Among this group were those with the least skills or the poorest
attitudes. Others found that having been unemployed for a long period of time made them less

“The Great Depression of 1929”

attractive to employers. Long-term unemployment appears to have been concentrated among
people in their late teens and early twenties and those older than fifty-five. For many that came
of age during the depression, World War II would provide their first experience of full-time
employment.

With unemployment rates exceeding 25 percent, it was obvious that most of the unemployed
were not responsible for their plight. Yet the ideal that success came to those who worked hard
remained in place, and thus those who were unemployed generally felt a severe sense of failure.
The incidence of mental health problems rose, as did problems of family violence. For both
psychological and economic reasons, decisions to marry and to have children were delayed.
Although the United States provided more relief to the unemployed than many other countries
(including Canada), coverage was still spotty. In particular, recent immigrants to the United
States were often denied relief. Severe malnutrition afflicted many, and the palpable fear of it,
many more.

Effects by gender and race:-

Federal, state, and local governments, as well as many private firms, introduced explicit policies
in the 1930s to favor men over women for jobs. Married women were often the first to be laid
off. At a time of widespread unemployment, it was felt that jobs should be allocated only to male
"breadwinners." Nevertheless, unemployment rates among women were lower than for men
during the 1930s, in large part because the labor market was highly segmented by gender, and
the service sector jobs in which women predominated were less affected by the depression. The
female labor force participation rate—the proportion of women seeking or possessing paid work
—had been rising for decades; the 1930s saw only a slight increase; thus, the depression acted to
slow this societal change (which would greatly accelerate during World War II, and then again in
the postwar period).

Many surveys found unemployment rates among blacks to be 30 to 50 percent higher than
among whites. Discrimination was undoubtedly one factor: examples abound of black workers
being laid off to make room for white workers. Yet another important factor was the
preponderance of black workers in industries (such as automobiles) that experienced the greatest
reductions in employment. And the migration of blacks to northern industrial centers during the
1920s may have left them especially prone to seniority-based layoffs.

Cultural effects:-

One might expect the Great Depression to have induced great skepticism about the economic
system and the cultural attitudes favoring hard work and consumption associated with it. As
noted, the ideal of hard work was reinforced during the depression, and those who lived through
it would place great value in work after the war. Those who experienced the depression were
disposed to thrift, but they were also driven to value their consumption opportunities. Recall that
through the 1930s it was commonly thought that one cause of the depression was that people did
not wish to consume enough: an obvious response was to value consumption more.

“The Great Depression of 1929”

The New Deal:-

The nonmilitary spending of the federal government accounted for 1.5 percent of GDP in 1929
but 7.5 percent in 1939. Not only did the government take on new responsibilities, providing
temporary relief and temporary public works employment, but it established an ongoing federal
presence in social security (both pensions and unemployment insurance), welfare, financial
regulation and deposit insurance, and a host of other areas. The size of the federal government
would grow even more in the postwar period. Whether the size of government today is larger
than it would have been without the depression is an open question. Some scholars argue for a
"ratchet effect," whereby government expenditures increase during crises, but do not return to the
original level thereafter. Others argue that the increase in government brought on by the
depression would have eventually happened anyhow.

In the case of unemployment insurance, at least, the United States might today have a more
extensive system if not for the depression. Both Congress and the Supreme Court were more
oriented toward states' rights in the 1930s than in the early postwar period. The social security
system thus gave substantial influence to states. Some have argued that this has encouraged a
"race to the bottom," whereby states try to attract employers with lower unemployment insurance
levies. The United States spends only a fraction of what countries such as Canada spend per
capita on unemployment insurance.

Some economists have suggested that public works programs exacerbated the unemployment
experience of the depression. They argue that many of those on relief would have otherwise
worked elsewhere. However, there were more workers seeking employment than there were job
openings; thus, even if those on relief did find work elsewhere, they would likely be taking the
jobs of other people.

The introduction of securities regulation in the 1930s has arguably done much to improve the
efficiency, fairness, and thus stability of American stock markets. Enhanced bank supervision,
and especially the introduction of deposit insurance from 1934, ended the scourge of bank
panics: most depositors no longer had an incentive to rush to their bank at the first rumor of
trouble. But deposit insurance was not an unmixed blessing; in the wake of the failure of
hundreds of small savings and loan institutions decades later, many noted that deposit insurance
allowed banks to engage in overly risky activities without being penalized by depositors. The
Roosevelt administration also attempted to stem the decline in wages and prices by establishing
"industry codes," whereby firms and unions in an industry agreed to maintain set prices and
wages. Firms seized the opportunity to collude and agreed in many cases to restrict output in
order to inflate prices; this particular element of the New Deal likely served to slow the recovery.
Similar attempts to enhance agricultural prices were more successful, at least in the goal of
raising farm incomes (but thus increased the cost of food to others).

International Effects

It was long argued that the Great Depression began in the United States and spread to the rest of
the world. Many countries, including Canada and Germany, experienced similar levels of
economic hardship. In the case of Europe, it was recognized that World War I and the treaties

“The Great Depression of 1929”

ending it (which required large reparation payments from those countries that started and lost the
war) had created weaknesses in the European economy, especially in its financial system. Thus,
despite the fact that trade and capital flows were much smaller than today, the American
downturn could trigger downturns throughout Europe. As economists have come to emphasize
the role the international gold standard played in, at least, exacerbating the depression, the
argument that the depression started in the United States has become less central.

With respect to the rest of the world, there can be little doubt that the downturn in economic
activity in North America and Europe had a serious impact. Many Third World countries were
heavily dependent on exports and suffered economic contractions as these markets dried up. At
the same time, they were hit by a decrease in foreign investment flows, especially from the
United States, which was a reflection of the monetary contraction in the United States. Many
Third World countries, especially in Latin America, responded by introducing high tariffs and
striving to become self-sufficient. This may have helped them recover from the depression, but
probably served to seriously slow economic growth in the postwar period.

Developed countries also introduced high tariffs during the 1930s. In the United States, the major
one was the Smoot-Hawley Tariff of 1930, which arguably encouraged other countries
to retaliate with tariffs of their own. Governments hoped that the money previously spent on
imports would be spent locally and enhance employment. In return, however, countries lost
access to foreign markets, and therefore employment in export-oriented sectors. The likely effect
of the increase in tariffs was to decrease incomes around the world by reducing the efficiency of
the global economy; the effect the tariffs had on employment is less clear.

“The Great Depression of 1929”

Observations and learning:-
Recent economic times may mirror what American grandparents or great-grandparents went
through in the Great Depression. While this time may be a challenge, it may be an opportunity to
look back and learn how previous generations coped with tough economic times. Hopefully, we'll
never need to relive their lessons l

Quit using credit. If you don't have the cash to make a purchase, then don't buy it. If you have
credit cards, make sure to pay the balance off every month. If you can't pay off the balance, then cut
up the credit card(s) and work on paying down what you owe. One of the first lessons learned by
people who survived the Great Depression was to never borrow money unless you have a clear plan
for how you're going to pay it back.[1] And when layoffs are a reality, expecting to pay for it with your
Christmas bonus or your next paycheck is not a sound plan. If you don't have the money to pay for
it right now, don't buy it.

• Use Affirmations Effectively - Repeat this affirmation to yourself until it sinks in: Debt is not
an option.
• Prioritize Your Debts - Prioritizing your debts can help you pay them off as quickly as
possible, and it can provide the security you need to get back on your feet even in lean times.
earned, but at the very least we can appreciate their resourcefulness and gain perspective on our
own situations.

Nurture positive relationships with family and friends. They will see you through difficult times.
But you need to work together and stop being in denial and expect a free ride.

• Be honest with your family and friends that you are facing difficult times financially. And don't
be ashamed--good people have money troubles.

• Discover ways to barter and help each other.

• Talk to Your Children About a Financial Crisis You don't want to worry your young children,
but doing so in a forthright, reassuring way will be more helpful than keeping up a lie. Kids usually
want your time and attention more than stuff, anyway.
• Get Adult Kids to Pay Their Share A healthy adult should not expect parents to pay their
way. And a healthy adult certainly shouldn't expect their children to pay their way. Baby boomers,
it's time to grow up. If this has been the case, this is as good a reason as any to stop this
enabling behavior.
• Have a Depression Dinner. Research what people ate during the Depression. It wasn't all
pinto beans and corn bread.

• Enjoy the Simple Pleasures. During the Depression, people still had fun, just not lavishly
expensive fun. Children had soapbox derbies, teenagers had dance contests, and everyone
played Monopoly, did puzzles, read, and listened to the radio. Get together to discuss
philosophy or pray; play poker or make crazy quilt pillows; play instruments and dance. In
those days, it took some imagination and ingenuity, but they had a lot of fun without hanging
out at the mall, and you can too. Many of the friendships and alliances formed during the
Great Depression on the basis of such activities stood the test of time.

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 • Do it yourself. When money is short, you don't really have a choice - either you do it
yourself, or it doesn't get done. Learn how to fix and maintain everything in your home, in
addition to your clothes and accessories.
•

o Sew. Learn how to mend torn seams, hem, sew buttons, and sew zippers. This will
make your clothes last much longer. When you need new clothes, either shop at
second-hand stores and tailor the clothes so they fit, or buy fabric and make your
own clothes from patterns instead of buying an expensive outfit just for the designer
label. You can also apply your sewing skills to recycle old clothes into handy new
things, like turning an old pair of jeans into a tote bag.
o Get in touch with your inner handyman (or handywoman). Do you know how to fix a
running toilet?Pack a water shutoff valve? Change a clothes drier belt? Replace an
interior doorknob?
o Change the oil in your car. While you're at it, you might want to check and change
the fluids, battery and cabin air filter yourself. Alternatively, if you want to develop a
good relationship with your auto mechanic, see if you can barter - perhaps an oil
change in exchange for a professional haircut? Or a tire rotation for meat loaf?
• See frugality as a virtue. There's a difference between being frugal and being cheap or
stingy. A frugal person makes the most of what they have; a cheap person is just focused on
not spending money. During the Great Depression, frugality was seen as a positive trait.
During hard times, it'll help you get by, but when things get better, maintaining those habits
will help you build wealth.[Plus, frugality requires planning, creativity, and critical thinking - all
of which are important life skills, regardless of the state of the economy.

o Reduce Expenses
Treat food with respect. When times get tough - really tough - you appreciate having food on the
table. You might never know what it's like to have to eat wet bread for dinner, but you don't have to
get to that point to make the resolution to never waste food. "Take all you want, but eat all you take."
Cook food from scratch and, if you can, go straight to the source (such as dealing directly with
farmers) or become your own source: grow your own food, keep livestock, gather wild edibles,
and/or hunt wild game if possible and legal. Whatever it is that you procure for food, never let it
make it to the garbage can without a very good reason.

• Save Money by Shopping Once a Month

• Get Started in the Slow Food Movement
• Keep Chickens in a City
• Learn to cook. There is probably no skill that will get you through hard times with equanimity
than being able to rustle up a good meal for yourself out of whatever's around.

• Buy preserved (canned, dried, etc.) foods in bulk whenever the cost is lower than buying a
smaller size.

• Avoid "convenience" foods, as they are usually more expensive and less healthy. Learn to
cook. You can save a lot of money by cooking from scratch rather than ordering take-out or take-
away. A good thrifty cook can make a tasty, nutritious meal from inexpensive ingredients and
"stretch a meal". Also, leftovers are much cheaper to bring to work or school than buying lunch.

“The Great Depression of 1929”

 • Don't Treat Your Soil Like Dirt The importance of soil conservation came to the forefront
during the Dust Bowl. Due in large part to destructive farming practices, vast areas of the
United States were turned into sterile, lifeless landscapes and many families left destitute.
o If you are involved in agriculture, practice good soil management for your locale.

o As a citizen, advocate for and support good soil management: protective farming
styles, community gardens, sensible logging practice, and avoidane of destroying
sensitive ecological systems whenever possible.

o In your own backyard, check and prevent erosion through good landscaping,
compost if possible, use gardening, lawn, and landscaping processes that build soil.

• Reuse, reuse, reuse. The amount of stuff you have should already be reduced by your
limited spending, and you'll always want to think twice before throwing anything away,
whether it's into the trash or the recycling bin. Get everyone involved, especially children -
hold up an item that you would normally throw away and ask, "How can we reuse this?" Here
are some ideas to get you started:

o Reuse an Empty Altoids Tin

o Turn a t-shirt into a sexy bikini or baby romper
o Reuse Old Shower Curtains
o Recycle Your Socks
Practice Good Domestic Skills. Keep your home clean, tidy, organized, and hygienic. For
one, you will save money on waste and replacement. But on a powerful level, you can feel
more in control of your corner of the world. Whatever your worst expectations of being broke
are, living in a dirty, disorganized place is likely to make it seem like they're coming horribly
true.
1. Be thankful. Be thankful when you're economically strapped? Of course. Make a list of the
top five things you couldn't live without, and chances are, all of those things are not possessions.
Most of all, be optimistic. As one Great Depression survivor said, "I never thought a cloud was so
dark that I couldn't find a silver lining" (Betty Davison).[2]

“The Great Depression of 1929”